Performance Shipping pens potential aframax sale deal
Performance Shipping Enters Exclusive Tanker Sale Agreement
Greece’s Performance Shipping has announced a strategic forward sale and exclusivity agreement with an independent third party concerning its aframax tanker, the P. Sophia. This agreement grants the buyer exclusive rights to bid for the conversion of the vessel into a Floating Production Storage and Offloading (FPSO) unit, aimed at servicing a national oil company. If the project is awarded during the auction concluding on April 5, 2026, the buyer will purchase the tanker for $36 million, with additional incentives for early delivery.
Details of the Sale Agreement
Under the terms of the agreement, the **P. Sophia**, which was built in 2009, could be sold within 120 days of the auction’s conclusion, contingent upon the buyer winning the conversion project. If the vessel is delivered to the buyer by September 30, 2025, the sale price will increase by $1 million, highlighting the financial advantages of timely execution. During the exclusivity period, Performance Shipping retains the right to operate the vessel but is barred from selling it to any other parties until the auction is finalized in April 2026.
Performance Shipping’s CEO, Andreas Michalopoulos, stated that this decision was influenced by the specific design and suitability of the **P. Sophia** for the conversion project. He emphasized that the agreement not only provides a pathway for generating cash flow from current operations but also secures a definite sale price, which is dependent solely on the buyer’s success in the auction, rather than fluctuating market values of comparable vessels. This strategic move aims to bolster the company’s financial stability while positioning it advantageously within the offshore oil and gas sector.
